1099 Tax Calculator 2025–2026 &
Self-Employment Tax Estimator

The Self-Employment tax rate for 2026 is 15.3% — 12.4% for Social Security and 2.9% for Medicare. The Social Security portion applies only up to the 2026 wage base limit of $184,500 (up from $176,100 in 2025); Medicare applies to all earnings. High earners pay an additional 0.9% Medicare surtax above $200,000.

The 30% rule of thumb comes from combining two tax obligations: roughly 15.3% in Self-Employment tax plus approximately 15% in federal income tax for a median earner. That adds up to around 30% of net income. Your actual number depends on your income level, state, and deductions — use the calculator above for a precise figure.

The biggest deduction most freelancers miss is the home office deduction. Beyond that, track software subscriptions, professional equipment, health insurance premiums, and business travel. You can also deduct half of your self-employment tax bill when calculating adjusted gross income — at $50,000 net income that saves you roughly $1,100–$1,500. Every deduction reduces the income the calculator taxes you on.

If a client pays you $600 or more in a calendar year, they are required to send you a 1099-NEC form reporting that income to the IRS. You owe tax on all self-employment income regardless of whether you receive a 1099 — the form is just a reporting mechanism, not a threshold for owing taxes.

A safe starting point is 25–30% of your net income after deductions. If you are in a higher income bracket or a high-tax state, lean toward 30–35%. Use the calculator above to get your specific number, then divide by four for quarterly estimated tax payments.